We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Yinggao Hldgs | LSE:YGH | London | Ordinary Share | GB0003754743 | ORD 0.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.75 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMYGH
RNS Number : 5326O
Yinggao Holdings PLC
20 September 2011
Yinggao Holdings plc
("Yinggao" or the "Company")
Interim Results
The Board of Yinggao announces the unaudited interim results of the Company for the period from 1 January 2011 to 30 June 2011. A copy of these financial statements will also be available on the Company's website www.yinggaoholdings.com.
Enquiries:
Angela Leung Tel: +852 2219 9999 Yinggao Holdings plc www.yinggaoholdings.com Paul Shackleton Tel: +44 (0) 207 776 6550 Daniel Stewart & Company Plc www.danielstewart.co.uk
CHAIRMAN'S STATEMENT
Introduction
I am delighted to report that the Group's performance during the six months to 30 June 2011 has resulted in profits significantly higher than during the same period of prior year. We have deployed our resources to achieve greater efficiency in our core operations including the continuing capital investment in the upgrade of the facilities at our container terminal and in the lease of new barges that will drive the future profitability of the Group. The performance is particularly encouraging given the economic slowdown both in the USA and Europe.
Results
Record revenues for a six month period in the first half of 2011 of HK$276 million, up 76% on the corresponding period in 2010, have resulted in an EBITDA of HK$34 million (H1 2010: HK$21 million). Profit before taxation totalled HK$28 million (H1 2010: HK$14 million) and earnings per share totalled HK$1.01 (H1 2010: HK$0.51), representing growth of 100% and 98% respectively.
The Group's gross profit increased by 31% to HK$39 million in H1 2011 from HK$30 million in H1 2010. However, the gross profit margin fell to 14% in the first half of 2011 from 19% in the corresponding period in 2010, due to 54% of group revenue being generated from trading of non-ferrous metal, up from 39%. In non-ferrous metal trading, the gross profit margin fell from 5.2% to 1.6%.
The container terminal segment delivered a gross profit margin of 28% compared to 29% in the previous period. The barging services segment's gross profit margin increased from 30% to 34% year-on-year, largely due to increased handling capacity of the barges, coupled with increased income generated from container leasing.
The Group's cash balances stood at HK$ 24 million as at 30 June 2011, compared to HK$6 million as at 30 June 2010. The Group made HK$102 million prepaid lease payments during the first six months of 2011(H1 2010: HK$ nil) which was paid to the owner of our new barges as a deposit payment so as to secure a long term lease as well as a competitive chartering fee. These substantial lease payments resulted in the net cash generated from operation activities of minus HK$3.5 million. However, management took the view that this is a one off expenditure which the board does not consider a long term working capital hurdle to the Group.
Operating Review
Operationally, the Group has performed well in the first half of the year. It has made good progress with its strategy to increase its revenue year on year across all three business segments.
The container terminal reported an increase in the half year both in revenue and throughput of 17% and 19% respectively, compared to the corresponding period last year. We are very pleased to have expanded our customer base in domestic trade, which has alleviated the effect of the slowdown in export trade in China. Despite the continuous growth in revenue of the container terminal, we do not expect its profit margin will grow in parallel as the depreciation cost will increase incrementally due to the installation of the new machinery and equipment.
It was particularly pleasing to see the strong performance of the barging service business during this period. Its revenue continued to grow with an increase of 57% to HK$58 million from HK$37 million in the first half year which accounted for 21% (H1 2010: 24%) of the Group's total revenue. Not only has the operating profit of this business segment itself increased (H1 2011 : HK$16 million vs H1 2010: HK$6.4 million), but its contribution to Group profit increased from 44% to 56% compared to the same period last year. This has provided an incentive to the management to accelerate the strategy of expanding the barging services business so as to maximize shareholders' returns. We are in fact benefiting from the planned operational synergies as the container leasing business provides auxiliary service to our customers in shipping.
During the first six months of 2011, approximately 54% of the Group's revenues were derived from trading of non-ferrous metal. Whilst its profit margin is only 1.3%, its operating profit of HK$1.9 million represented 7% of the total operating profit of the Group. Though management recognises the trading profit margin is relatively low compared to the other two core businesses, the trading platform has proven to be a stimulus to the barging services business as some metal trading customers use our barges for shipment as well.
Prospects
We now place the delivery of strong operating performance at the heart of our strategy for the business, as demonstrated again by these results. Looking into the second half of 2011, the Group will continue to build its business and focus on Yinggao's strengths to achieve its ultimate goal of becoming the industry leader in the barging service business sector in the Pearl River Delta. The size of our "228 TEU" barges has proved to be far more cost effective compared to the common size of "120 TEU" barges used by our competitors in the region. We will continue expanding our fleet with an aim to increase our overall carrying capacity.
As for the Keen Chance Terminal, the board is optimistic on the outlook for growth of the throughput for the years to come. The deployment of the advanced new cargo handling equipment and machinery, coupled with the facility upgrade project, has not only increased the cargo turnover efficiency but also increased the stacking capacity by approximately 20%. In addition, we will adopt a cautious approach by diversifying the customer base so as to address the changing global economy.
The Board would again like to thank all our staff for the commitment, professionalism and loyalty that they have shown during the last six-months of progress. We are looking forward to the future with confidence.
Angela Leung
Chairman
19 September 2011
FINANCIAL HIGHLIGHTS
For the six months ended 30 June 2011
(Expressed in Hong Kong dollars)
Hot Features
Premium
(Audited)
(Unaudited) Year ended
Six months ended
30 June 31 December
2011 2010 2010
HK$'000 HK$'000 HK$'000
Revenue 275,801 156,651 482,016
EBITDA * 33,986 20,947 56,099
Profit for the period/year 23,118 13,085 37,646
Total equity 382,368 321,478 355,620
======== ======== ===========
*Earnings attributable to owners of the parent before interest, tax, depreciation and amortisation
Condensed consolidated income statement
For the six months ended 30 June 2011
(Expressed in Hong Kong dollars)
(Unaudited) (Audited)
Six months ended Year ended
30 June 31 December
2011 2010 2010
Note HK$'000 HK$'000 HK$'000
Revenue 3 275,801 156,651 482,016
Cost of sales (236,705) (126,787) (416,284)
----------- ---------- ------------
Gross profit 39,096 29,864 65,732
Other income 2,590 67 3,290
Administrative expenses (13,089) (15,450) (24,313)
----------- ---------- ------------
Profit from operations 28,597 14,481 44,709
Finance costs (547) (7) (283)
----------- ---------- ------------
Profit before taxation 4 28,050 14,474 44,426
Taxation 5 (4,932) (1,389) (6,780)
----------- ---------- ------------
Profit for the
period/year 23,118 13,085 37,646
=========== ========== ============
Attributable to:
Owners of the parent 20,052 10,129 29,339
Non-controlling
interests 3,066 2,956 8,307
----------- ---------- ------------
23,118 13,085 37,646
=========== ========== ============
HK cents HK cents HK cents
Earnings per share
attributable to owners
of
the company for the
period/year
- Basic and diluted 6 1.01 0.51 1.48
=========== ========== ============
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2011
(Expressed in Hong Kong dollars)
(Unaudited) (Audited)
Year ended
Six months ended 31
30 June December
2011 2010 2010
HK$'000 HK$'000 HK$'000
Profit for the period/year 23,118 13,085 37,646
Other comprehensive income for
the period/year
Exchange differences arising on
translation
of foreign operations 3,630 1,458 11,039
----------- ---------- -----------
Total comprehensive income for
the period/year 26,748 14,543 48,685
=========== ========== ===========
Attributable to:
Owners of the parent 22,252 11,327 36,531
Non-controlling interests 4,496 3,216 12,154
----------- ---------- -----------
26,748 14,543 48,685
=========== ========== ===========
Condensed consolidated balance sheet
As at 30 June 2011
(Expressed in Hong Kong dollars)
(Audited)
(Unaudited) As at
As at 30 June 31 December
2011 2010 2010
Note HK$'000 HK$'000 HK$'000
NON-CURRENT ASSETS
Goodwill 14,168 14,168 14,168
Prepaid lease payments 8 95,134 - -
Property, plant and equipment 9 310,195 295,105 292,308
---------- --------- ------------
419,497 309,273 306,476
---------- --------- ------------
CURRENT ASSETS
Prepaid lease payments 8 7,020 - -
Inventories 2,540 1,282 2,078
Trade and other receivables 142,654 99,400 105,761
Cash and cash equivalents 23,943 6,163 32,563
---------- --------- ------------
176,157 106,845 140,402
---------- --------- ------------
CURRENT LIABILITIES
Trade and other payables 167,414 71,545 67,361
Obligations under finance
leases 8,422 6,758 4,476
Taxation 10,760 8,905 8,051
---------- --------- ------------
186,596 87,208 79,888
---------- --------- ------------
NET CURRENT
(LIABILITIES)/ASSETS (10,439) 19,637 60,514
---------- --------- ------------
TOTAL ASSETS LESS CURRENT
LIABILITIES 409,058 328,910 366,990
---------- --------- ------------
NON-CURRENT LIABILITIES
Obligations under finance
leases 16,505 1,366 1,289
Loans from fellow investors
in subsidiaries 7,050 5,544 6,946
Deferred tax liabilities 3,135 522 3,135
---------- --------- ------------
26,690 7,432 11,370
---------- --------- ------------
NET ASSETS 382,368 321,478 355,620
CAPITAL AND RESERVES
Share capital 11 115,224 115,224 115,224
Reserves 172,710 125,254 150,458
---------- --------- ------------
Total equity attributable to
owners of the
parent 287,934 240,478 265,682
Non-controlling interests 94,434 81,000 89,938
---------- --------- ------------
TOTAL EQUITY 382,368 321,478 355,620
Condensed consolidated statement of changes in equity
For the period ended 30 June 2011
(Expressed in Hong Kong dollars)
Attributable to owners of the parent
---------------------------------------------------------------------------
(note i) (note
Statutory ii) Non-
Share Share surplus Merger Exchange Accumulated controlling Total
capital premium reserve reserve reserve losses Total interests equity
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Balance at 1
January 2011
(Audited) 115,224 120,942 5,770 201,104 59,448 (236,806) 265,682 89,938 355,620
Comprehensive
income
Profit for the
period - - - - - 20,052 20,052 3,066 23,118
Other
comprehensive
income
Exchange
differences
arising on
translation
of foreign
operations - - - - 2,200 - 2,200 1,430 3,630
-------- -------- ---------- -------- --------- ------------ -------- ------------ --------
Total
comprehensive
income for
the period - - - - 2,200 20,052 22,252 4,496 26,748
-------- -------- ---------- -------- --------- ------------ -------- ------------ --------
Balance at 30
June 2011
(Unaudited) 115,224 120,942 5,770 201,104 61,648 (216,754) 287,934 94,434 382,368
======== ======== ========== ======== ========= ============ ======== ============ ========
Balance at 1
January 2010
(Audited) 115,224 120,942 4,349 201,104 52,256 (264,724) 229,151 77,784 306,935
Comprehensive
income
Profit for the
period - - - - - 10,129 10,129 2,956 13,085
Other
comprehensive
income
Exchange
differences
arising on
translation
of foreign
operations - - - - 1,198 - 1,198 260 1,458
-------- -------- ---------- -------- --------- ------------ -------- ------------ --------
Total
comprehensive
income for
the period - - - - 1,198 10,129 11,327 3,216 14,543
-------- -------- ---------- -------- --------- ------------ -------- ------------ --------
Balance at 30
June 2010
(Unaudited) 115,224 120,942 4,349 201,104 53,454 (254,595) 240,478 81,000 321,478
======== ======== ========== ======== ========= ============ ======== ============ ========
Attributable to owners of the parent
---------------------------------------------------------------------------
(note i) (note
Statutory ii) Non-
Share Share surplus Merger Exchange Accumulated controlling Total
capital premium reserve reserve reserve losses Total interests equity
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Balance at 1
January 2010
(Audited) 115,224 120,942 4,349 201,104 52,256 (264,724) 229,151 77,784 306,935
Comprehensive
income
Profit for the
year - - - - - 29,339 29,339 8,307 37,646
Other
comprehensive
income
Exchange
differences
arising on
translation
of foreign
operations - - - - 7,192 - 7,192 3,847 11,039
-------- -------- ---------- -------- --------- ------------ -------- ------------ --------
Total
comprehensive
income for
the year - - - - 7,192 29,339 36,531 12,154 48,685
-------- -------- ---------- -------- --------- ------------ -------- ------------ --------
Transactions
with owners
Transfer of
statutory
surplus
reserve - - 1,421 - - (1,421) - - -
-------- -------- ---------- -------- --------- ------------ -------- ------------ --------
Balance at 31
December 2010
(Audited) 115,224 120,942 5,770 201,104 59,448 (236,806) 265,682 89,938 355,620
======== ======== ========== ======== ========= ============ ======== ============ ========
Notes:
(i) Statutory surplus reserve:
In accordance with the laws of the People's Republic of China (the "PRC") and the Articles of Association of certain of the Company's subsidiaries, directors of these subsidiaries may at their discretion make appropriations to a statutory surplus reserve equivalent to 10% of the subsidiaries' net profits until the balance reached 50% of the registered capital of that subsidiary. Distribution of profits to shareholders can only be made after such appropriations.
The statutory surplus reserve may be used to reduce any losses incurred or be capitalised as paid up capital. The statutory public welfare reserve is not available for distribution.
(ii) The merger reserve represents the difference between the nominal value of shares of the subsidiary company acquired, and the nominal value of the Company's shares issued in exchange in 2002.
Yinggao Holdings plc
Condensed consolidated cash flow statement
For the period ended 30 June 2011
(Expressed in Hong Kong dollars)
(Unaudited) (Audited)
Six months ended Year ended
30 June 31 December
2011 2010 2010
HK$'000 HK$'000 HK$'000
Cash flow from operating
activities
Profit before taxation 28,050 14,474 44,426
Adjustments for :
Finance costs 547 7 283
Impairment loss of property,
plant and equipment - - 4,588
Depreciation 8,455 9,422 19,697
Loss/(gain) on disposals of
property, plant and
equipment 705 - (546)
Exchange difference (2,574) - (3,744)
Operating cash flow before
working capital changes 35,183 23,903 64,704
Increase in prepaid lease
payments for rentals of
vessels (102,154) - -
Increase in inventories (462) (82) (878)
Increase in trade and other
receivables (31,435) (35,757) (35,556)
Increase in trade and other
payables 97,542 29,095 25,430
------------- ---------- -----------
Net cash flow (used
in)/generated from
operations (1,326) 17,159 53,700
Income tax (paid)/refunded (2,223) 439 (3,193)
------------- ---------- -----------
Net cash (used in)/generated
from operating activities (3,549) 17,598 50,507
------------- ---------- -----------
Cash flows from Investing a c
tivities
Purchases of property, plant
and equipment (24,185) (26,305) (40,274)
Proceeds from disposals of
property, plant and
equipment 23,893 - 14,686
------------- ---------- -----------
Net cash used in investing
activities (292) (26,305) (25,588)
------------- ---------- -----------
Cash flows from financing
activities
Repayments on obligations
under finance leases (4,345) (1,849) (9,041)
Interest paid (547) (7) (283)
------------- ---------- -----------
Net cash used in financing
activities (4,892) (1,856) (9,324)
------------- ---------- -----------
Net (decrease)/ i ncrease in
cash and cash equivalents (8,733) (10,563) 15,595
Cash and cash equivalents at
the beginning of the period
/year 32,563 16,726 16,726
Effect of foreign exchange
rate changes 113 - 242
------------- ---------- -----------
Cash and cash equivalents at
the end of the period /year 23,943 6,163 32,563
============= ========== ===========
Yinggao Holdings plc
Notes to the condensed interim financial statements
For the period ended 30 June 2011
(Expressed in Hong Kong dollars)
1 General information
The Company is a public limited company incorporated and domiciled in the United Kingdom. The registered office of the company is located at 25 Farringdon Street, London, EC4A 4AB. Its principal place of business are in Hong Kong and the People's Republic of China ("PRC").
The principal activities of the Company and its subsidiaries (hereinafter collectively referred to as the "Group") are provision of terminal services, barging services and non-ferrous metal trading.
The Company's shares were admitted to trading on the AIM Market of the London Stock Exchange. These condensed consolidated interim financial statements are presented in Hong Kong dollars ("HK$"), unless otherwise stated, and were reviewed by the Audit Committee and approved for issue by the Board of Directors on 19 September 2011.
2 Summary of significant accounting policies
(a) Basis of preparation and statement of compliance
The Company has a financial year end date of 31 December. These condensed consolidated interim financial statements for the six months ended 30 June 2011 have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting". These condensed consolidated interim financial statements should be read in conjunction with the annual audited financial statements of the Group for the year ended 31 December 2010, which have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted for use in the European Union ("EU").
EU-endorsed IFRSs may differ from IFRSs, as issued by the International Accounting Standards' Board("IASB") if, at any point in time, new or amended IFRSs have not been endorsed by the EU. At 30 June 2011, there were no unendorsed standards effective for the period ended 30 June 2011 affecting these condensed consolidated interim financial statements, and there was no difference between IFRSs endorsed by the EU and IFRSs issued by the IASB in terms of their application to YinggaoHoldings plc.
(b) Impact of recently issued IFRSs
The IASB has issued a number of amendments to IFRSs, new standards and interpretations that are first effective for the current accounting period of the Group. Of these, the following developments are relevant to the Group's financial statements:
-- Revised IAS 24, Related Party Disclosures
-- Improvements to HKFRSs (2010)
The above amendments to IFRSs have had no material impact on the Group's results of operations and financial position, and do not contain any additional disclosure requirements specifically applicable to the interim financial statements.
Up to the date of issue of this interim financial statements, the IASB has issued a number of amendments, new standards and Interpretations that are not yet effective for the period ending 30 June 2011 and that have not been early adopted in the interim financial statements. Of these developments, the followings may be relevant to the Group's financial statements:
Effective for
accounting
periods
beginning on
or after
-- IAS 27 (2011), Separate Financial Statements 1 January 2013
(as amended in 2011)
-- Amendments to IAS 1, Presentation of Items 1 July 2012
of Other
Comprehensive Income
-- Amendments to IAS 12, Deferred Tax: Recovery 1 January 2012
of Underlying Assets
-- IFRS 9, Financial Instruments 1 January 2013
-- IFRS 10, Consolidated Financial Statements 1 January 2013
-- IFRS 13, Fair Value Measurement 1 January 2013
The Group is in the process of assessing the impact of these amendments, new standards and interpretations in the period of initial application, but is not yet in a position to determine whether the adoption will have any significant impact on the Group's results of operations and financial position.
(c) Use of estimates and assumptions
The preparation of financial statements requires the use of estimates and assumptions about future conditions. The use of available information and the application of judgement are inherent in the formation of estimates. Actual results in the future may differ from those reported as a result of the use of estimates and assumptions about future conditions. Management believes that the company's critical accounting estimates involving a higher degree of judgement or complexity with those assumptions and estimates mainly relate to the impairment of loans and advances, the goodwill impairment and the valuation of financial instruments.
(d) Consolidation
The condensed consolidated interim financial statements of Yinggao Holdings plc comprise the financial statements of the Company and its subsidiaries.
3 Revenue and segment reporting
The principal activities of the Group are provision of terminal services, barging services and non-ferrous metal trading together with other related services including sea freight forwarding and barge hire.
The Group determines its operating segments based on information reported to the chief operating decision maker, which is focused on the category of customer for each type of goods and services. The principal categories of customers for these goods and services are terminal services, barging services and non-ferrous metal trading.
Information regarding the above segments is reported below:
Non-ferrous
metal
Terminal Services Barging Services trading Other trading Unallocated Total
For the six
months ended 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
(Unaudited) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Revenue from
external
customers 68,595 58,729 58,306 37,088 148,900 60,834 - - - - 275,801 156,651
============ ========== ============ ========== ============ ============ ============ ========== ============ ============ ============ ==========
Reportable
segment
revenue 68,595 58,729 58,306 37,088 148,900 60,834 - - - - 275,801 156,651
============ ========== ============ ========== ============ ============ ============ ========== ============ ============ ============ ==========
Reportable
segment
profit/(loss) 13,259 11,740 15,934 6,375 1,941 3,168 (607) (492) (1,930) (6,310) 28,597 14,481
Finance costs (545) - (2) (7) - - - - - - (547) (7)
Taxation (1,882) (1,389) (2,341) - (320) - - - (389) - (4,932) (1,389)
------------ ---------- ------------ ---------- ------------ ------------ ------------ ---------- ------------ ------------ ------------ ----------
10,832 10,351 13,591 6,368 1,621 3,168 (607) (492) (2,319) (6,310) 23,118 13,085
============ ========== ============ ========== ============ ============ ============ ========== ============ ============ ============ ==========
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
31 31 31 31
30 June December 30 June December 30 June 31 December 30 June December 30 June 31 December 30 June December
As at the
period/year
ended 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Reportable
segment
assets 392,350 354,812 139,598 58,041 56,506 22,090 363 448 6,837 11,487 595,654 446,8788
============ ========== ============ ========== ============ ============ ============ ========== ============ ============ ============ ==========
4 Profit before taxation
Profit before taxation is stated after charging/(crediting):
(Unaudited) (Audited)
Six months ended Year ended
30 June 31 December
2011 2010 2010
HK$'000 HK$'000 HK$'000
Depreciation on property, plant
and equipment 8,455 9,422 19,697
Impairment loss of property,
plant and
equipment - - 4,588
Loss/(gain) on disposal of
property, plant and
equipment 705 - (546)
============ =========== ===========
5 Taxation
The amount of income tax expense charged to the consolidated income statement represents:
(Unaudited) (Audited)
Six months ended Year ended
30 June 31 December
2011 2010 2010
HK$'000 HK$'000 HK$'000
Current tax:
- Hong Kong profits tax 3,050 - 691
- Overseas tax for the
period/year 1,882 1,389 3,476
----------- ---------- -----------
4,932 1,389 4,167
----------- ---------- -----------
Deferred tax:
- current year - - 2,386
- pervious years - - 227
----------- ---------- -----------
- - 2,613
----------- ---------- -----------
4,932 1,389 6,780
=========== ========== ===========
In respect of subsidiaries operating in Hong Kong, the provision for Hong Kong profits tax is calculated at 16.5% of the estimated assessable profit for the period/year less allowable losses brought forward.
Subsidiaries operating in the PRC are subject to Enterprise Income Tax ("EIT") at a rate of 25%. However, the Company's subsidiary in Guangzhou is now subject to a preferential tax rate of 24% as described below. Others had tax losses brought forward from previous years.
On 16 March 2007, the National People's Congress passed the Corporate Income Tax Law of the PRC (the "Tax Law"). Under the Tax Law, the EIT tax rate applicable to the Company's subsidiary in Guangzhou is increased from 15% to 25% progressively within five years from 1 January 2008 (2008: 18%; 2009: 20% 2010: 22%; 2011: 24%; 2012: 25%). The Tax Law has been applied when measuring the Group's current tax payable as at 30 June 2011.
6 Earnings per share
Basic and diluted earnings per share are calculated by dividing the earnings attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period/year ended 30 June 2011, 30 June 2010 and 31 December 2010, respectively.
(Unaudited) (Audited)
Six months ended Year ended
30 June 31 December
2011 2010 2010
Profit attributable to owners
of the
parent (HK$'000) 20,052 10,129 29,339
Weighted average number of
shares
in issue 1,978,895,139 1,978,895,139 1,978,895,139
Earnings per share -
Basic and diluted (HK cents) 1.01 0.51 1.48
============= ============= =============
7 Dividend
The directors do not recommend the payment of any dividend.(six months ended 30 June 2010: HK$Nil)
8 Prepaid lease payments
Prepaid lease payments represented a lump sum operating lease prepayments for a number of vessels used by the Group for barging services in the coming 15 years.
9 Property, plant and equipment
During the period, the Group purchased property, plant and equipment amounted to HK$47,605,000 (six months ended 30 June 2010: HK$26,305,000), in which HK$23,420,000 (six months ended 30 June 2010: HK$Nil) was acquired under finance leases.
In addition, the Group disposed of certain property, plant and equipment with carrying value of HK$24,598,000 (six months ended 30 June 2010: HK$Nil) for cash proceeds of HK$23,893,000 (six months ended 30 June 2010: HK$Nil).
10 Investments in subsidiaries
At 30 June 2011, the Company held 100% of the ordinary shares of Yinggao Investments Limited, a company incorporated in the British Virgin Islands ("BVI"), whose principal activity was that of, an investment holding company. Yinggao Investments Limited had the following subsidiaries' undertakings:
Equity interests
attributable Place of
Name to the Group Principal activities incorporation
2011 2010
Yinggao Providing
Consultants management
Limited * 100% 100% services BVI
Yinggao
International Investment
Limited 100% 100% holding BVI
Sub-letting of
Sanko Mineral yachts, ships
Limited 100% 100% and vessels BVI
Providing
Yinggao Shipping logistics and
(H.K.) Limited 100% 100% related services Hong Kong
Providing
Yinggao Shipping logistics and
Limited * 100% 100% related services Hong Kong
Yinggao Ship
Chartering Barge hiring and
Limited 100% 100% agency services Hong Kong
Trading of
Yinggao Resources non-ferrous
Limited 100% 100% metal Hong Kong
Yinggao Petro Trading of gas
Limited 100% 100% oil for vessels Hong Kong
Yinggao Ship
Investments
Limited 100% 100% Dormant Hong Kong
Arko Terminal Republic
Limited ("ATL") Investment of
* 100% 100% holding Seychelles
Investing in and
operation of a
Keen Chance terminal and
Terminal (GZ) providing
Company Limited logistics
("KCT") 40% 40% services PRC
Fujian Sanko
Mining Limited 70% 70% Dormant PRC
* Directly held by Yinggao Investments Limited. All other subsidiaries are indirectly held.
The 40% equity interest in KCT previously held by Keen Lloyd Energy Limited ("KLEL"), a subsidiary of Keen Lloyd Holdings Limited ("KLHL"), has been transferred to ATL. The transfer had been submitted for registration to the relevant PRC authorities.
Pursuant to an agreement dated 5 April 2002 entered into between KLEL and Miaotou Economic Development (GZ) Company Limited ("MEDCL"), (a shareholder of KCT which held a 30% equity interest in KCT), MEDCL agreed to vote in accordance with the instructions of KLEL at board meetings in view of its indebtedness to KLEL, for an approximate sum of RMB78 million (equivalent to HK$72.6 million at that time), and KLEL intended to convert the outstanding loan into registered capital of KCT.
On 22 April 2003, KLEL entered into a shareholder agreement with MEDCL and Harbour Economic Development Company Limited ("HEDCL"), another shareholder in KCT, whereby all parties agreed that MEDCL has unconditionally transferred the authority empowered to its directors representative (including their rights and obligations) to KLEL until KLEL transferred the 40% equity interests in KCT to ATL to reiterate the aforesaid agreement dated 5 April 2002.
On 16 May 2003, a supplemental agreement was entered into between ATL, KLEL, MEDCL and HEDCL by which all parties agreed that the above authority transferred to KLEL would be vested in ATL after KLEL completed the transfer of equity interests in KCT to ATL.
In accordance with the terms and conditions set out in the above agreements, KLEL effectively controls the board of KCT and this arrangement has been confirmed by the shareholders of KCT. In 2002, a Hong Kong lawyer expressed his view that KCT is a subsidiary of KLEL under Hong Kong Company Law. Control of KLEL has been transferred to ATL and therefore in the opinion of the directors, KCT is a subsidiary of ATL under the Companies Act 2006.
KCT will be a legal subsidiary of ATL immediately upon the registration of the transfer of the 40% of equity in KCT from KLEL to ATL.
11 Share capital
Number GBP'000
Authorised:
Ordinary shares of 0.5p each
At 30 June 2011, 30 June 2010 and 31
December 2010 30,000,000,000 150,000
============== =========
HK$'000
Equivalent to: 2,049,315
=========
HK$'000
Allotted, called up and fully paid:
Ordinary shares of 0.5p each
At 30 June 2011, 30 June 2010 and 31
December 2010 1,978,895,139 115,224
============== =========
12 Operating lease commitments
At 30 June 2011, the Group's total future minimum lease payments under non-cancellable operating leases are repayable as follows:
(Unaudited) (Audited)
As at As at
30 June 31 December
2011 2010 2010
HK$'000 HK$'000 HK$'000
Leases which expire:
- in the next year 5,163 4,078 1,714
- in the second to fifth years 37,683 2,321 1,393
- over five years 69,695 - -
--------- --------- -----------
112,541 6,399 3,107
========= ========= ===========
The Group is the leasee in respect of a number of properties and vessels held under operating leases. The leases typically run for an initial period of 1 to 15 years, at the end of which period all terms are renegotiated. None of the leases includes contingent rentals.
13 Capital commitments
The Group's capital commitments outstanding at 30 June 2011 in respect of the acquisition of property, plant and equipment in the interim financial statements are as follows:
(Unaudited) (Audited)
As at As at
30 June 31 December
2011 2010 2010
HK$'000 HK$'000 HK$'000
Contracted, but not provided
for 38,719 14,640 61,751
========= ========= ===========
14 Contingent liabilities
On 9 November 1999, KCT gave a guarantee for RMB18 million (equivalent to approximately HK$16.2 million at that time) in favour of Nangang Rural Credit Co-operation Bank for banking facilities granted to MEDCL, a fellow investor in KCT, secured over its equity interests in KCT. MEDCL was unable to repay the outstanding loan.
On 27 September 2001, the Guangzhou Law Court delivered an order and notice that the guarantee above was invalid and MEDCL's equity interest in KCT was frozen.
Based on legal advice, the equity interests had no material impact on the operations of KCT and the directors consider that no provision is required.
KCT maintains that the guarantee given was invalid on the following grounds:
(i) such guarantee did not have approval from the board of directors of KCT; and
(ii) in accordance with the law of the People's Republic of China , the board of directors and the management of KCT cannot give KCT's properties for guarantee to its shareholder.
Furthermore, KLHL, the Company's parent company, has indemnified the Group against any loss KCT will suffer should the guarantee be enforceable.
Accordingly, the directors are of the opinion that no provision should be made in the financial statements for any possible claim from the bank in respect of the litigation.
Save as disclosed above, the Group does not have any material contingent liabilities as at balance sheet date.
15 Related party transactions
The Group had the following material transactions which are carried out in ordinary course of business activities with related parties during the period/year:
(Unaudited) (Audited)
Six months ended Year ended
30 June 31 December
2011 2010 2010
Nature HK$'000 HK$'000 HK$'000
Purchase of goods by the Group - - 148,488
Forwarding services income received
by the Group 6,939 - 2,499
Lifting charges received by the
Group 600 - 1,200
Handling fee received by the
Group 2 - -
16 Financial statements
This statement does not comprise full financial statements within the meaning of Section 434 of the Companies Act 2006.
17 Financial risk management
All aspects of the Group's financial risk management objectives and policies are consistent with those disclosed in the annual financial statement for the year ended 31 December 2010.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGUPCBUPGPUB
1 Year Yinggao Chart |
1 Month Yinggao Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
